1. Billing Model Overview
Shopflo has transitioned to a prepaid billing model to ensure better service continuity. This model combines upfront payment for guaranteed service with usage-based billing for actual consumption.
Key Changes:
Prepaid Component: Monthly Minimum Guarantee (MG) paid in advance
Postpaid Component: Actual usage billed after consumption beyond the (MG)
Credit System: Prepaid amount for the first bill converted to credits
2. Prepaid Billing Structure
Phase 1: If Go Live Date (1st to 20th of the Month)
Process:
Collect the Monthly Guarantee (MG) amount
Load MG as service credits in your account
Next bill calculation: (Next cycle MG + Overages - Unused Credits)
Phase 2: If Go Live Date (21st onwards)
Process:
Collect Monthly Guarantee (MG) for the upcoming cycle
Load MG as service credits
Skip current cycle billing (T+1)
Next billing cycle (T+2): (Next cycle MG + Prorated usage + Overages - Available Credits)
Example Calculation:
Month 1 (Onboarding):
- MG Collected: ₹10,000
- Credits Added: ₹10,000
- Actual Usage: ₹8,500
- Remaining Credits: ₹1,500
Month 2 Bill:
- New MG: ₹10,000
- Previous Credits: ₹1,500
- Net Amount Due: ₹8,500
3. Credit Management System
Credit Allocation
Monthly Guarantee amounts are converted to service credits upon the first billing
Credits are consumed against actual usage during the billing cycle
Additional credits issued only when specifically authorized by Shopflo
Credit Usage
Credits are applied automatically against service usage
No manual credit monitoring or top-up options available
Credit balance information available in dashboard for reference only
Unused credits do not roll over and are forfeited after service termination
4. Billing Cycle Structure
Phase | Timeline | Description |
Invoice Date | 2nd of each month | Monthly invoice generated |
Payment Due | 12th of each month | Payment deadline (10 days) |
Dashboard Access Revoked | When 1 invoice becomes overdue by 15 days | Access is revoked immediately 15 days of overdue |
Checkout Suspended | When 2 invoices become overdue by 15 days | Payment processing stopped completely |
We maintain the 2nd to 2nd cycle as our standard billing period.
Service Restoration:
Services resume only after full payment of all outstanding dues
5. Invoice Details & Payment Terms
Invoice Issuance
Frequency: Monthly, automated billing system
Date: 2nd of each month (or next business day if holiday)
Content: Subscription fees, usage charges, applicable taxes
Delivery: Email notification with detailed breakdown
Payment Structure
Due Date: 12th of each month (10 days from invoice date)
Grace Period: 3 additional days (total 13 days)
Invoice Amount: Inclusive of GST (18%) and TDS (2% under 194J)
Payment Method: As agreed via email with your sales representative
Account Verification
Please verify your organization details in the Shopflo dashboard under "Organization Details" to ensure accurate billing.
6. Late Payment Policy & Penalties
Late Fee Structure
Late Fee: 5% per month of outstanding amount after due date
Calculation: Applied monthly on overdue invoices
Compounding: Late fees apply to the principal amount each month until paid
Shopflo is registered with MSME, delayed payments can incur an interest penalty of up to 3x the invoice amount. Hence the invoice needs to be cleared within due date i.e., (10+3)days
Service Restrictions Timeline
Overdue Status | Action Taken | Impact |
1 Invoice Overdue | Dashboard access revoked upon next invoice generation | Cannot access analytics, reports, settings |
2 Invoices Overdue | Checkout services are suspended immediately | Payment processing stopped completely |
Continued Non-payment | Legal action initiated | Full recovery proceedings |
Example Scenario:
- Invoice 1: 2nd November (Due: 12th November)
- Invoice 2: 2nd December - Dashboard access revoked immediately
- Late Fee: 5% applied monthly on Invoice 1 from 13th November
- Invoice 2 becomes overdue: 12th December - Checkout suspended
- Continued late fees: 5% monthly on both invoices until paid
7. Legal Recovery Rights
Shopflo reserves the right to:
Outstanding Dues Recovery: Pursue full payment of all unpaid invoices
Legal Action: Initiate legal proceedings against the company and/or individual directors/authorized signatories
Credit Reporting: Report payment defaults to credit bureaus
Asset Recovery: Exercise all legal remedies available under applicable laws
Important: Service suspension does not waive the obligation to pay outstanding dues. All amounts remain payable with applicable late fees and legal costs.
8. Refunds and Cancellations
Cancellation Policy
Initial Period: Cancellation allowed within 7 days of first billing with refund eligibility
Ongoing Service: 30 days written notice required BEFORE new invoice generation
Notice Method: Written notice to support@shopflo.com, cc'ing billing@shopflo.com
Effective Date: End of current billing cycle (only if notice given before next invoice)
Refund Policy
First-Time Users Only: Refunds available within 7 days of first invoice
No Ongoing Refunds: No refunds for subsequent billing cycles
Unused Credits: No refunds for unused credits after 7-day initial period
Processing Time: 7-14 business days for eligible refunds
Administrative Charges: ₹500 or 5% (whichever is lower) for processing
Important Notes
Credits are non-refundable after the initial 7-day period
Cancellation notice must be received before the next billing cycle begins
No exceptions to the refund policy will be considered
9. Subscription and Pricing
Plan Structure
Feature Access: Based on your chosen subscription tier
Pricing: As agreed via email with your designated sales representative
Changes: 30-day advance notice for any pricing modifications
Upgrades/Downgrades: Effective from next billing cycle
Usage Monitoring
Real-time usage tracking available in dashboard
Monthly usage reports provided with each invoice
Overage alerts when approaching MG limits
10. Contact Information
Billing Inquiries
Email: billing@shopflo.com
Response Time: 24-48 hours for billing queries
General Support
Email: support@shopflo.com
Response Time: 5-10 mins for urgent issues
Sales and Account Management
Contact: Your designated sales representative
Escalation: sales@shopflo.com
11. Legal and Compliance
Terms Acceptance
By continuing to use Shopflo services after the effective date of this policy, you acknowledge and agree to these updated terms and conditions.
Governing Law
This policy is governed by Indian law and subject to the jurisdiction of courts in Bangalore (Bengaluru).
Data Protection
All billing and payment data is processed in accordance with applicable data protection laws and Shopflo's Privacy Policy.
Important Note
This updated billing model is designed to provide better service reliability while ensuring fair usage-based pricing. We appreciate your cooperation during this transition.
For any questions or clarifications regarding this policy, please contact our billing team at billing@shopflo.com.
This document supersedes all previous payment terms and billing policies.